Ovo Energy is reported planning to acquire Shell Energy Retail, which in addition to supplying gas and electricity to 1.4 million households, also has a fixed broadband base numbering around 500,000 subscriptions
If Ovo’s bid is successful, it would once again make it the second largest energy supplier in the UK market, and follows the high-profile acquisition of SSE’s retail division back in 2019, and marks Shell’s exit from the broader European retail energy market. The company is also, according to industry sources, keen to offload it’s broadband arm, and with OVO not having a foothold in the sector, this will likely be one of the first outcomes of any deal. OVO previously sold SSE’s telecoms division to TalkTalk. There have also been reports that Centrica, the owner of British Gas and the UK’s largest energy supplier, are considering a bid which would prove controversial.
Any deal for the latter would mark increasing consolidation in the UK broadband market with several providers having merged or bought outright over the last few months, and with M&A becoming an increasingly dominant theme within the UK market, any sale of Shell’s broadband arm will add to the conversation.
Learn more about how the UK market dynamics are changing at this year’s Connected Britain which is being held at the ExCel in London on September 20 & 21